The stock market has been choppy to say the least, with the S&P 500 having lost nine percent of its value. The index has also erased virtually all of its gains in 2018. Many investors are wondering if this is a short-term correction or if a Bear Market is just around the corner. Should investors run for the exits or can they profit off of all the uncertainty?

Stock Markets Choppy, Are We Out of the Woods Yet?

Between October 3 and October 26, the S&P 500 lost more than 10% of its value, pushing the index into correction territory, which is defined as a drop of at least 10% or more from its recent high. The NASDAQ fell into correction territory and the Dow industrials has shed almost nine percent since peaking on October 3.

Is more pain on the way? Investors have certainly become more concerned. On Monday, October 29, the CBOE Volatility Index, or fear gauge, touched an intra-day level of 24.69; having increased almost 100% since the start of October, where is entered the month at 11.99.

The VIX falls when stocks rise and rises when stocks fall. That’s because it measures how much traders are willing to pay for protective option on the S&P 500 in the coming 30 days. For this time of year, a reading of around 20 is average. The current levels show that investors are increasingly concerned about the market’s direction and are seeking protection from a larger downturn.

The markets are, for the most part, in correction territory and a Bear Market, which is defined as a loss of 20% or more, is certainly not out of the question. For that to happen though, optimistic investors have to give in to the market fears and sell their holdings, which would send stocks tumbling even further. Optimistic investors are certainly more cautious right now, but they haven’t given in to market fears just yet.

But they could.

Yes, the U.S. economy is chugging along, and corporate earnings have been strong, but there is a lot of other reasons why U.S. and Canadian stocks could fall into Bear Market territory. There are ongoing concerns about the ongoing trade war with China, and how it will impact U.S. stocks. Rising interest rates makes borrowing more expensive and could put the brakes on the U.S. economy; seasonal volatility; concerns about the U.S. housing market; a weak earnings outlook; and fears that the longest bull market on record is in its later stages, and a recession is on the horizon.

Are stocks simply taking a breather or is the current sell off just getting started? It will make a difference to your portfolio. Since 1900, the markets average around one correction annually and investors suffer through a Bear Market every 3.5 years.

The average stock market correction lasts an average of 10 months, with equities falling 13%. The average Bear Market lasts for 15 months with stocks falling 32%. Not all Bear Markets are created equal. The last Bear Market lasted 17 months, from October 2007 to March 2009, with the Dow losing 54% of its value.

The markets have been pretty consistent with historical, short-term corrections, but investors haven’t lived through a Bear Market in a long time. If there’s one thing we know about stock market cycles, a Bear Market is definitely coming.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

The S&P 500 has slipped into correction territory and the Dow is close behind. While many investors run and hide during times of extreme volatility, the trading experts at Learn-To-Trade.com can teach you proven investing strategies that can help you profit no matter what the markets are doing.

Learn-To-Trade.com is Canada’s oldest provider of stock market trading courses. Over the years, Learn-To-Trade.com has shown thousands of investors how to trade more confidently and profit consistently.

At Learn-To-Trade.com we understand that investors learn at their own pace and/or may want to spend more time with a certain investing strategy. That’s why we provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade

4.0

2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

https://www.learn-to-trade.com/testimonials/testimonial-3/

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade

4.0

2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

https://www.learn-to-trade.com/testimonials/joseph-l/

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade

5.0

2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

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Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade

4.0

2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

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Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade

4.0

2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

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Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade

5.0

2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

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Robert B

There is always someone ready to answer my questions.

Robert B

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4.0

2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

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Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade

5.0

2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

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Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade

4.0

2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

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Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade

4.0

2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

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Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade

5.0

2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

https://www.learn-to-trade.com/testimonials/shelley-p/

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading. Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!

Learn To Trade

5.0

2016-10-07T08:56:52-04:00

Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading. Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!

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Disclaimer: All statements, whether expressed verbally or in writing, are the opinions of Learn-To-Trade.Com Inc., its instructors and/or employees, and are not to be construed as anything more than an opinion. Examples presented are for educational purposes only. There is significant risk in trading financial assets and derivatives. Students / subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue presented by Learn-To-Trade Inc. and its employees to be construed as a recommendation to buy or sell any stock or issue. Learn-To-Trade Inc. is not a broker or an investment advisor. It is strictly an educational service.